BULGARIAN DELEGATION TO BEIJING APRIL 28TH 2014 · Uruguay 41,109 67,186 331,580 ... Cosmetics 27...
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A project funded by the European Union BULGARIAN DELEGATION TO BEIJING APRIL 28 TH 2014
Transcript of BULGARIAN DELEGATION TO BEIJING APRIL 28TH 2014 · Uruguay 41,109 67,186 331,580 ... Cosmetics 27...
A project funded by the European Union
BULGARIAN DELEGATION TOBEIJINGAPRIL 28TH 2014
Purpose
To assist European SMEs to export to China and
establish, develop and maintain commercial
activities in the Chinese market.
BD
S&C
HR & Training
Legal
Information
and advice
Support
services
The EU SME Centre - Services
Ask the expert Consultations Knowledge centre
Trainings Webinars Events
E-learning Databases Hot-desking
Centre Website
• All services
available through
website…
• After registration!
www.eusmecentre.org.cn
Our Approach
EU SMEs
Don’t know much about China as a market
Considering the
Chinese market
Already doing
business in China
Raising Awareness
Key Issues to be aware of
and sign posting
Technical Advice
Diagnostic kit
Are you ready for China?
• Includes four reports and an
online quiz
• Covers all aspects of early
market entry in China
• Includes lists of national and
European support organisations
• Includes a multitude of links to
further sources of information
• Freely available on our website
www.eusmecentre.org.cn
Publications
Access latest and essential information on China for free on our website through 80+ publications.
• Reports
• Guidelines
• Case Studies
• E-Learning Modules
• Interactive Infographics
• Webinar Recordings
Sectors
• Automobiles and auto parts
• Chemicals
• Commercial services
• Construction
• Food & Beverages
• Green technology
• Healthcare
• ICT
• Machinery equipment and
components
• Textiles and apparel
Webinars
• Generally broadcast every week (usually Tuesdays)
• In-house and external experts discuss a variety of topics
• Some past topics:
• „Find the right Chinese partner‟,
• „How to get my goods through Chinese customs‟
• „How to tap into China‟s thrust for building‟
• Participation is free for all EU SMEs and intermediaries
Hot desks
• Free work stations and
meeting rooms for SMEs
temporarily in China
• Within the Centre itself,
right next to the Centre‟s
experts
• Located in the business
centre of Beijing
• Can be booked from a
couple of hours to a couple
of weeks
Databases
• Trade shows and
exhibitions
• Service providers
• Law database
Mission for Green Growth
• 330 meetings
• Between 50 EU
and 80 Chinese
companies
Pablo Recio
• Director of the Beijing office of Gold Millennium
Group
• Living and working in China since 2005
• Focus on food and beverage import and distribution
processes and trade barriers
• Previously worked for public agencies including
ICEX (Spanish Institute for Foreign Trade) and
Extenda (Trade Promotion Agency of Andalusia) as
well as private companies
• Bachelor in Business from the University and
Granada and Masters in Quality Management and
Business Internationalisation
Our Speaker
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Welcome to Beijing!
Today´s presentation main topics are:
• Foodstuffs
• Cosmetics
• Tips
• Questions
EU Foodstuffs Exports to China
Top 10 EU Foodstuffs and Beverages Exported to China
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Product
Total EU Exports
(Million Dollars) Leading Country
Spirits 881 France
Meat 413 Denmark
Pork meat 33.17%
Meat offals 17.38%
Rest of meat products 49.45%
Wine 708 France
Pastries 570 Holland
Fish 419 Holland
Dairies 264 France
Milk and cream 54%
Lactoserums 18.35%
Rest of dairy products 27.65%
Olive oil 110 Spain
Cocoa 175 Italy
Sugar 46 Germany
Livestock ( horses ) 26 Holland Source: China Customs, 2013
EU Foodstuffs Exports to China
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• More than 10 years of strong growth both in amount and variety
• Despite all difficulties…growth expected to continue in the foreseeable future• Demand factors.• Offer factors.
• To compete is China is to compete worldwide
• Opportunities arise (mostly in 2-3-4 tier cities) and will be for those that are better prepare
• Short term and low intensity strategies rarely work
• Legal issues and technical barriers are complex and in constant change
• Finding the right partners and managing the relationship with them is key
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
2008 2009 2010 2011 2012
Imports to China and Exports from Bulgaria of Wine (HS 2204) by value
Imports China
Exports Bulgaria
EU Foodstuffs Exports to China
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Export Country Million DollarsMillion
Dollars
Million
Dollars
2204 2011 2012 2013
Worldwide 1,437,573 1,580,362 1,554,972
France 746,524 787,361 708,168
Australia 216,271 227,242 236,289
Chile 103,833 147,795 166,839
Spain 100,060 112,030 107,062
Italy 93,352 96,230 105,288
USA 57,450 70,986 79,216
Sudáfrica 21,259 22,477 24,357
Argentina 14,438 18,508 23,158
Germany 19,721 17,565 20,526
New Zeland 18,454 23,704 20,097Source: China Customs
54%
16%
7%
7%
7%
4%
2%1%
1%
1%
1,554,972 Million Dollars France
Australia
Chile
Spain
Italy
USA
Sudáfrica
Argentina
Germany
New Zeland
Source: China Customs
Source: UN Comtrade
• Big market
• France main exporter
• Other main exporters are Australia, Chile, Spain andItaly.
• Differences:• Exports from Bulgaria: Increased by 93%
in 2012• Imports to China: Increased by 22% in
2012
Wine
EU Foodstuffs Exports to China
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Wine
Opportunities Main issues Regulations
- Product penetration
- Secondary markets
- Knowledge about product is
improving but still low
sophistication
- New importers coming into
the market
- Finding the right distributor.
- Exclusivity?
- Payment conditions
- Register the brand before
start
- Bulgaria country image
- Strong competition
- Some indications of market
saturation
-General for foodstuffs
-Alcoholic beverages
-Specific standard for wine
-Labelling
-Licenses and documents
More information:
- Report: http://www.eusmecentre.org.cn/content/sub-sector-report-wine-market-china
- Case study: http://www.eusmecentre.org.cn/content/cs-wines-–-importing-wine-china
- Infographic: http://www.eusmecentre.org.cn/content/importing-wine-china
EU Foodstuffs Exports to China
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Liqueur and Spirits
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
2008 2009 2010 2011 2012
Imports to China from the world of HS 2208 (value)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2008 2009 2010 2011 2012
Imports to China and Exports from Bulgaria of liqueur (HS 2208) by value
Imports China
Exports Bulgaria
Source: UN Comtrade
Opportunities Main issues Normative
Market growth
New products coming into the
market
Consumption within the culture
Brandy is the major product,
followed by Whisky, other products
are more limited
Finding distributor is key
-Alcoholic drinks
-Labelling
-Licenses and docs
EU Foodstuffs Exports to China
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Meat
Export
Country
Million Dollars
2011 2012 2013
Worldwide 3,405,881 4,106,091 5,926,908
USA 1,357,173 1,340,567 1,176,992
Australia 168,035 300,794 1,131,244
New Zeland 177,253 297,667 716,216
Brazil 603,783 593,795 490,367
Denmark 319,463 363,844 413,591
Germany 78,473 287,395 410,269
Canadá 209,035 251,551 377,942
Uruguay 41,109 67,186 331,580
Spain 129,536 187,081 218,844
France 131,864 129,734 193,531
Poland 158 31,122 141,198$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Frozen Bovine Meat
Bovine Meat
Pork Meat Meat Offals
Millo
n D
ollars
Meat Products 02
2011
2012
2013
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2008 2009 2010 2011 2012
Exports of Meat (HS 02) from Bulgaria toChina, (value)
• HS Code: 02• Booming market with excellent expectations• Fast growing sales and market share for the EU after the
signing of standards• USA main exporter followed by Australia, New
Zealand, Brazil and Denmark• Europe supplies mostly pork, some chicken• Bulgaria: No protocol signed although there are some
exports
Source: UN Comtrade
Source: China Customs
Source: China Customs
EU Foodstuffs Exports to China
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Meat
Opportunities Main issues Regulations
Market expected to maintain is
booming performance
Imports dominated by traders
willing to work with many
suppliers
- Getting approved. Long hard
process mostly manage at
governmental level
- Export requirements
- Working with traders
- Pork mostly, some chicken.
Definilily no meat from cows.
Extremely complex approval
process
Protocol, health
certificate, register as
exporter, license for import, per
time approval, etc…
More information:
- Webinar: http://www.eusmecentre.org.cn/content/webinar-how-export-meat-products-china
- Guideline: http://www.eusmecentre.org.cn/content/exporting-meat-products-china
EU Foodstuffs Exports to China
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Jam, jellies, marmalades…
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2008 2009 2010 2011 2012
Imports to China from the world of HS 2007 (value)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
2010 2011 2012
Imports to China and Exports from Bulgaria of Jam (HS 2007) by value
Imports China
Exports Bulgaria
Opportunities Main issues Regulations
Prepackaged product (standard
product). No need for special
procedure.
Demand
HS Code: 2007
France main exporter
India, USA and Germany
Global competition
Standard for food imports and
labelling
See chart below
More information:
- Report: http://www.eusmecentre.org.cn/content/food-beverage-market-china
- Guidelines: http://www.eusmecentre.org.cn/content/food-and-beverages-technical-requirements-
and-labelling
Process Map at Origin
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Approval ofthe condition specified in
protocol
Exports documents
Foodstuffs exporters license
General import restriction
Label, bill of lading & contract
Protocolsigned
No need for protocol
Need for an export model
Quarantine in origin (if applicable)
International Transport
Only for some products
Applicable to all products
Process Map in China
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Customs inspection
Quarantine in China (if applicable)
Import Duties
VATLabel
inspection
Qualityinspection
Consumption Tax(if applicable)
General foodstuffs importer license
Specific import license
Specific permission for import operation
International Transport
Only for some products
Applicable to all products
Cosmetics
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Cosmetics
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HS CODE FOR COSMETIC PRODUCTS
PRODUCTS CHEMICAL OR ALLIED PRODUCTS
33 Essential oils, perfumes, cosmetics, toiletries
CODE DESCRIPTION TARIFF VAT LUX.
CONSUMPTION
TAX
33.04 Beauty, make-up and skin care preparations (other
than medicaments), including sunscreen or sun tan
preparations; manicure or pedicure preparations.
10% 17% 30%
33.04.10 Lip make-up preparations 10% 17% 30%
33.04.20 Eye make-up preparations 10% 17% 30%
33.04.30 Manicure or pedicure preparations 10% 17% 30%
33.04.90 Other for skin care and make up. 10% 17% 30%
33.05 Hair preparations 6,5/10% 17% 30%
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$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
2008 2009 2010 2011 2012
Imports to China from the world of HS 33 (value)
• HS Code: 33
• Great opportunity if we can get in!
• France main exporter followed by Japan, USA, India andRep. of Korea.
• Technical barriers from Chinese are raise to a very highlevel to protect its market
• Local brands controlling low end market based on price.• International brand to control high end market• Still room in the intermedium segment
0
100000
200000
300000
400000
500000
600000
700000
800000
2008 2009 2010 2011 2012
Imports to China and Exports from Bulgaria of Cosmetics (HS 33) by value
Imports China
Exports Bulgaria
Cosmetics
72%
12%
7%6% 3%
Imports to China from the world of cosmetic products
Beauty, make-up and skin care
Hair preparations
Shaving and toilet, deodorizers
Perfumes and toilet waters
Oral and dental hygiene
Cosmetics
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Opportunities Main issues Regulations
Market demand booming
Image advantage on imported
products
Many segments opening, such as
olive oil cosmetics, men
cosmetics, etc
Clear and strong barriers from
the Chinese government
Having the products approved
is a VERY LONG AND VERY
HARD process
Two families of products
Examples
Cosmetic product dossier
Nano-materials and Animal testing
Labeling requirements
Ingredient requirements
Agent and CFDA License
CIQ Inspection and Customs
Clearance
More information:
- Webinar: http://www.eusmecentre.org.cn/content/webinar-how-successfully-import-cosmetics-
chinese-market
Cosmetics
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Product TypeInspection
costs
Notary
costsServices Total
Total +
authorization
(2000)
Number of
samples
Shampoo
Not
special 5800 300 3600 9700 11700 16
Deodorant Special 9500 300 6000 15800 17800 20
Slimming Special 32000 300 8000 46300 48300 20+35
*RMB
Chinese
Agent
Letter of authorization
Authorization SDFA
Notary own
country
Certification to export
Send samples
- Certificate of free sale- Chinese name- Ingredients
Inspection at
laboratory
- Yes
1 month
- NO
1 month
20
days2 months • Two families of products.
• “Standard”• “Special” + 1 year on test in people
• Why is harder than importing foodstuffs?• Theoretically the process is fine, but problems will appear
constantly
Product Type
Shampoo Not special
Makeup Not special
Nail care Not special
Perfume Not special
Sunscreen Special
Deodorant Special
Slimming Special
Hair removal Special
Anti-Speckle Special
Cosmetics
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Cosmetics
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DIRECT SALESIt was banned to cosmeticproducts from 1998 to 2005.
PHARMACIES It is still not very popular. Cosmeceuticals products. It inspires confidence.
BEAUTY SALONS Customer Loyalty System. Loyal to brands and demand quality.
SPA / MASSAGE CENTERS Very hard to get into them.
Cosmetics
33
INTERNATIONAL BEAUTY & COSMETICGuangzhou
April
COSMOPROFHong KongNovember
The best reputation in cosmetic sector
CHINA BEAUTY EXPO
ShanghaiMay
The most important in China Mainland
CHINA HAIR & BEAUTY EXPO
BeijingJuly
INTERNATIONAL EDIBLE OIL
AND OLIVE OIL EXHIBITION
GuangzhouMay
Main Obstacles When Exporting
Rules Application
• Exceptions by the thousands
• Customs behaviour, can it change from port to port?
• Exporters responsibilities
• Where can I find all related information?
• What can I do to protect my interests?
• Law enforcement
• Make your case useful
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Contact Details
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Beijing Office4th Floor, Bldg C, No.1110 Shengshilongyuan,Gaobeidian, Chaoyang District, Beijing, 100022P.R.China
Telephone: (86) 10 5761 2440 Fax: (86) 10 5761 2441 E-mail: [email protected]
Shanghai OfficeRoom 1902, No. 488, WuningSouth Road, Jing‟an District,Shanghai, P.R.China
Telephone: (86) 21 5118 2481Fax: (86) 21 5118 2482 E-mail: [email protected]
Guangzhou OfficeRoom 510, Yan Qiao Building, No.89, Yanlin Road, Tianhe District, Guangzhou 510000P.R.China
Telephone: (86) 20 3846 6124 Fax: (86) 20 3846 6124E-mail: [email protected]
Hong Kong Office15th Floor, Radio City, 505 Hennessy Road, Causeway Bay, Hongkong, P.R.China
Telephone: 852 8172 1049 Fax: 852 8120 9538 E-mail: [email protected]
Pablo Recio, Beijing Office Director
Email: [email protected]
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